Japanese firm Tody Industries Ltd has agreed to acquire 26 percent stake in WIL Car Wheels Ltd (WCWL), a wholly-owned subsidiary of Wheels India Ltd (WIL) – a company promoted by the TVS Group. The investment in WIL’s passenger car steel wheels business will be made through new issue of equity shares by WCWL to Topy. Through this strategic partnership, both the companies aim to strengthen their positions in India’s passenger car steel wheels market.
"The strategic partnership will combine the leadership position already established by Wheels India in the passenger car steel wheel segment in India, with the technology skills and global relationships of Topy. With this strategic partnership, we are well positioned to build on the already strong platform that has been established by WIL. We believe that this partnership will put the business on a focused growth path and strengthen the existing relationship with Topy as a technology partner," said Srivats Ram, managing director, Wheels India Ltd.
WCWL was set up by WIL to carry on the passenger car steel wheel business in India. WIL has entered into agreements to transfer its entire passenger car steel wheel business carried out its plants in Padi (Chennai) and Bawal (Haryana), on a slump sale basis, to the new company. The passenger car steel wheels business reported a turnover of Rs 224.30 crores in FY2017. It caters to major automitive players in India such as Maruti Suzuki, Hyundai and Ford.
With this transfer, WCWL will have a leadership position in the passenger car steel wheels segment, catering to all major automobile manufacturers in India as well as to the export segment.
Topy believes that this strategic partnership will help expand its global footprint, and not only provide a delivery platform for its OE customers across the globe, but also enable it to participate in the growing passenger car wheel segment in India. Topy Industries, a leading manufacturer of steel wheels for cars, trucks, construction & mining equipment, etc, has facilities to manufacture steel wheels for passenger cars in Japan, US, China and MExico.
Wheels India Ltd is one of the leading manufacturers of steel wheels for cars, trucks, tractors and construction & mining equipment; forged aluminium wheels for trucks, air suspension systems for buses & trucks, and components for energy equipment. The company reported a turnover of Rs 2,176.06 crores in FY 2017 and profits after tax of Rs 59.31 crores. The company has manufacturing plants at Padi, Pune, Rampur, Bawal, Sriperambudur and Pantnagar, with a combined overall annual capacity of 16 million wheels and a diversified customer base with over 30 customers globally.
